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5 SURPRISING THINGS YOU CAN DO WITH YOUR CANADIAN TAX REFUND (THAT AREN’T SHOPPING)

canadian tax refund

What is a Canadian tax refund?

In April, Canadians must pay their income tax liability for the prior year and when most Canadians file their income tax returns. Getting a Canadian tax refund can be an amazing experience for numerous Canadians. It’s like obtaining an unexpected reward from the federal government. The idea of having extra money to spend can be thrilling as well as inspiring, and it can offer a sense of relief and security for those that might be battling financially.

Even just the knowledge that you will be getting a tax refund is exciting, as taxpayers excitedly wait for the confirmation of how much money they will be getting back. Everyone uses this time to think about how they are going to spend their refund. Overall, the enjoyment of receiving a tax refund is a favourable experience.

But what is a Canadian tax refund? Following the filing of their annual income tax return to the Canadian government, a taxpayer may receive a sum of money known as a tax refund. This refund represents the variance between the total amount of taxes paid by the taxpayer throughout the year and those they actually owe, based on their income and tax deductions/tax credits. In the event that a taxpayer has paid more taxes than they are required to, they will be issued a refund for the surplus amount.

While many people find it appealing to go on a shopping spree or book a holiday with that extra cash, there are really a lot more surprising and also functional things to use for your Canadian tax refund. In this Brandon’s Blog, I will explore 5 things you may not have thought about that you can do with your reimbursement that will certainly not only profit you financially but also assist you to accomplish your long-term objectives.

From investing in your retirement to repaying some financial debt, these alternatives might not be as interesting or exciting as a brand-new wardrobe or a journey to an exotic location, but they can have a substantial effect on your financial well-being. So, before you hit the shopping centre or book your next trip, take a minute to take into consideration these alternate suprising ways to use your tax refund. You may be amazed at just how much more satisfying it is to put that money towards something that will benefit you financially in the future. Let’s jump in!

5 surprising things you can do with your Canadian tax refund

It’s that time of year yet again – tax time. While it can be a difficult time for many, there’s always the possibility of a silver lining: the opportunity for a tax refund. According to the Canadian federal government, the average Canadian tax refund was $2,086 in 2022. There are at least 5 surprising things you can do with your Canadian tax refund that isn’t shopping.

So if you’re questioning what to do with your Canadian tax refund this year, keep reading – you could be surprised by the choices available to you. Here are the 5 ways that will help with your financial planning and money management:

1. Utilizing your Canadian tax refund to plan for your retirement is a wise decision.

Here are some practical ways to achieve this:

  • Establish an RRSP: It is recommended to open an RRSP account with a reputable financial institution or insurance company as a means of building your retirement savings. You can contribute up to 18% of your previous year’s earned income, up to the 2023 limit of $30,780. This approach enables you to save more for your future while minimizing your tax liability today. As a result, every dollar of your Canadian tax refund will have a meaningful impact on your retirement fund.
  • Make a contribution to your existing RRSP: Use your Canadian tax refund to make a contribution to your existing RRSP account. The payment is tax-deductible, which will lower your taxable income and therefore your 2023 tax obligation.
  • Select your financial investments: Choose exactly how you wish to invest the money within your RRSP. You can select from a potpourri of financial investment options, all depending on your risk tolerance and how far away from retirement you are. This is an important element of financial planning.
  • Monitor and also readjust your portfolio: Frequently review your investment portfolio to make sure that it is aligned with your long-term goals. Make changes if essential to make certain that you’re on track to accomplish your retirement goals.

Investing in your retirement is a wonderful way to guarantee that you have adequate cash to support your lifestyle after you quit working. By using your Canadian tax refund to make payments to your RRSP, it is both good financial and tax planning because you’re capitalizing on a tax-efficient method to save for your future.

2. Donate to a charity or a cause you care about

Contributing all or a part of your Canadian tax refund to a charity that you believe in is a fantastic way to produce a positive impact on the world. Follow these sensible actions to make a distinction:

  • Select a charity: Donate to a charity that resonates with your values and beliefs. You can choose one or more charities that contribute either to your local area or anywhere around the world.
  • Make a contribution: Use your Canadian tax refund to make a donation to your chosen charity. The majority of charities accept contributions via online platforms, and many permit automatic month-to-month contributions.
  • Think about a matching gift: Examine if your company provides a donation program to specific charities that match the amount of money you donate to. See if any of those charities appeal to you.

3. Pay off high-interest debt

Using your Canadian tax refund to pay off high-interest debt is a clever way to improve your financial situation. Below are some actions you can take:

  • Determine what your high-interest debt is: Take a look at your debts and find those with the greatest rate of interest. These are commonly credit cards, personal loans, or payday advances.
  • Establish the total up to pay off: Calculate just how much of your Canadian tax refund you can afford to use to repay the high-interest financial debt. It’s of course best to be able to pay off the entire debt, but if you can’t, pay down as much as you can of the high-interest rate debt.
  • Make the repayment: Use your tax refund to repay in full or pay down the highest-interest rate debt first. Make certain to comply with any payment conditions set by your lender or financial institution.
  • Prevent accumulating brand-new financial debt: Once you’ve settled the high-interest financial obligation, stay clear of building up new high-interest rate financial debt by budgeting your expenses and restricting your use of credit cards. You don’t want to start increasing high-interest-rate debt again after you have paid it off.

Settling high-interest debt is a clever financial action since it can conserve your money in the future by reducing the amount of interest you’ll pay. It can also help improve your credit rating, which can help you in the future when you need to apply for a home or car loan. By using your Canadian tax refund to settle high-interest debt, you can take a step in the direction of financial stability and ultimately freedom from debt.

4. Take a course or learn a new skill

Utilizing your Canadian tax refund to take a program or discover a brand-new skill can be a fantastic financial investment in yourself as well as your future. Here are some steps you can take:

  • Select a training course or skill: Determine a course or skill you wish to learn that can benefit you in your work or personal development. This can be an accreditation program, a language course, or a skills workshop.
  • Study choices: Look for reliable establishments that supply the program or skill you intend to learn. You can additionally look for online options or free courses offered on the internet.
  • Determine the cost: Establish the overall price of the program or skill, including any kind of materials or books you might need to acquire.
  • Pay for it with your tax refund: Use your Canadian tax refund to pay for the course or skills training. This way you don’t have to pay any money to invest in your personal growth.
  • Devote yourself to learning: Once you have actually enlisted in the training course or skills workshop, dedicate yourself to completing it. Set aside time each week to attend class, do homework and study. Stay encouraged by setting objectives and tracking your progression.

Using your Canadian tax refund to further your education and learning can help your personal development and your career, or just find a brand-new interest. By using your Canadian tax refund to take a course or discover a brand-new skill, you’re making a wise financial investment in your future.

5. Start or add to your emergency fund

Using your Canadian tax refund to begin or contribute to your emergency fund can be a clever way to plan for unforeseen expenses. Here are some steps you can take:

  • Establish just how much to save: In previous Brandon’s Blogs, I have recommended that everyone have an emergency fund of 3 to six months’ worth of household expenses in their reserve. Calculate how much you must save based on your monthly household expenses.
  • Open a separate account: Open up a separate savings account for your emergency reserve. Treat this account as untouchable, except in the case of a real emergency. This will make it less complicated to track any emergency expenses you must pay from this account. You must honestly treat this account as being “in case of emergency break glass” and not use it as a nice place to get some money from whenever you feel like it.
  • Set up automated transfers: Set up automated transfers from your everyday bank account to your emergency fund interest-bearing account. This will allow you to maintain the discipline of saving monthly from your income and avoid forgetting to contribute to your fund.
  • Use your Canadian tax refund: Use your tax refund to make a round-figure payment to your emergency reserve. This can assist you in reaching your savings objective faster.
  • Stay clear of utilizing the cash for non-emergencies: Resist the lure to utilize your reserve for non-emergency expenses. Keep the cash in the account until you need it for unexpected emergency expenses like additional medical costs, a major auto repair bill, or in case of job loss.

Beginning or contributing to your emergency fund can provide additional financial security when faced with unforeseen expenses. Use your Canadian tax refund to jumpstart your financial savings. You are taking positive action to reach financial stability and freedom.canadian tax refund

Canadian tax refund conclusion

In conclusion, your Canadian tax refund presents an opportunity to do more than just indulge in shopping sprees. By exploring alternative uses for your refund, you can not only make the most out of your money but also achieve various personal and financial goals. Whether it’s investing in your future, contributing to a cause you care about, or simply treating yourself to an experience, the possibilities are endless. So, before you hit the stores or add to your cart, take a moment to consider these surprising options and think outside the box. Your tax refund could be the key to unlocking new opportunities and experiences that will enrich your life for years to come.

I hope you enjoyed this Canadian tax refund Brandon’s Blog. Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.canadian tax refund

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Brandon Blog Post

SILICON VALLEY BANK: COULD A CANADIAN BANK EXPERIENCE A GIGANTIC CATASTROPHIC FAILURE?

silicon valley bank
silicon valley bank

Silicon Valley Bank failure: The SVB collapse

A subsidiary of the SVB Group called Silicon Valley Bank was heavily servicing the technology industry. The California-based Silicon Valley Bank is located in Santa Clara, in the Golden State and has been around since 1983. Ever since, they have actually opened up offices in a lot of various other places like the UK, Israel, as well as China.

Silicon Valley Bank’s pride and joy was all about supplying a variety of financial solutions, such as commercial business loans, private banking, asset administration, and also financial investment banking. They focused on dealing with start-ups, investors, and technology firms at differing phases of growth, providing them with access to resources, and know-how, as well as vital sources of capital.

With an eager focus on advancement, Silicon Valley Bank’s aim was to promote close relationships with the tech industry. They have actually contributed to funding lots of top-level technology firms, including Amazon, Tesla, and also Twitter, among others.

In this Brandon’s Blog, we dive deep right into the murky waters of SVB’s bankruptcy. We explore the various elements that contributed to this significant downfall and also look at what could happen if a Canadian financial institution failed.

Silicon Valley Bank failure: A brief history of Silicon Valley Bank

Silicon Valley Bank has been a game-changer in the tech market by satisfying the financial requirements of budding start-ups and their VC investors. With a first emphasis exclusively on tech start-ups, SVB soon branched out to cover a varied range of markets, including health care, energy, and even the wine industry.

At the heart of SVB’s organization lies a unique technique – developing resilient relationships with businesses just coming into existence and beginning to display signs of future potential, offering tailor-made financial and advisory solutions to allow for their development and growth. As well as it’s not a surprise that for many years, this Silicon Valley financial institution has actually contributed to the success of countless technology giants that we know today.

silicon valley bank
silicon valley bank

The Impact of Silicon Valley Bank’s failure on the Tech Industry: Here’s the latest on the banking crisis

With SVB being a principal in the industry, its death has created a void that will certainly be hard to fill. The financial institution’s lending tended to focus on early-stage start-ups making it a vital source of financing for lots of young businesses. Its bankruptcy has actually left most of these start-ups battling to secure funding, with fewer alternatives offered out there.

Along with its impact on startups, the Silicon Valley Bank failure has additionally influenced venture capitalists and also other investors. Numerous VC firms had partnerships with the bank, which gave them crucial financial and also consulting services. With SVB’s closure, these companies are now left without this key partnership, making it difficult for them in an unstable marketplace.

Silicon Valley Bank failure: What led to the Silicon Valley Bank failure?

Last week, SVB shocked the financial world by filing for bankruptcy protection. The reasons cited by the institution varied, including defaults on bad loans and losses in their investment holdings. Unfortunately, that’s not all. SVB was also hampered by regulatory restrictions and fierce competition, making it difficult to secure profits.

Many in the industry are bewildered by SVB’s sudden downfall, wondering how such a once-thriving bank could plummet so rapidly. Reports have uncovered that the root of SVB’s troubles can be traced back to their daring lending tactics.

SVB was renowned for its bold lending practices, including funding startups at an early stage with little to no revenue. Although this approach had delivered remarkable returns in the past, it left the bank now in this sad state.

silicon valley bank
silicon valley bank

Silicon Valley Bank failure: Can Canadian banks fail?

Naturally, bank failures can be a source of worry for Canadians since we put their money into financial institutions. The issue of whether or not a bank failure is a concern in Canada has been widely debated.

The stability and security of the Canadian banking system are widely acknowledged as among the best in the world. This is attributed partly to the rigid guidelines and also oversight enforced by both the federal government and the Bank of Canada. The financial industry in Canada is dominated by five main large institutions; The Royal Bank of Canada, TD Bank, Scotiabank, Bank of Montreal, as well as the Canadian Imperial Bank of Commerce, with smaller financial institutions and also credit unions also adding to the industry.

The diversity of the Canadian banking system spurs competition and aids to mitigate the risk of systemic failure in the event of a financial crisis. To make sure that the financial institutions have the required funding to withstand declines in the Canadian economy, Canadian banks need to hold sufficient capital and also undergo regular stress tests.

Although anything is possible, Canadian economic history and the regulation of Canadian banks suggests that a Canadian bank failure is a remote possibility.

Silicon Valley Bank failure: The Bank of Canada keeps Canada’s financial system healthy

The Bank of Canada, being the supreme financial authority in the Canadian economy, is mandated with the crucial responsibility of ensuring the overall economic and financial well-being of the country. Its multifaceted role encompasses a range of fundamental functions, some of which are outlined hereunder:

  1. Monetary Policy: The Bank of Canada is entrusted with the pivotal responsibility of charting and operationalizing the monetary policy framework for the country. This involves meticulous regulation of the overnight rate, which serves as Canada’s key interest rate and consequentially influences the lending rates for commercial and consumer customers of Canadian financial institutions. The Bank of Canada’s primary objective is to maintain inflation at manageable, stable, and predictable levels.
  2. Financial System Stability: The Bank of Canada is a vigilant guardian of Canada’s monetary system stability. It ensures sustained liquidity to the economy during times of financial distress and supervises and regulates financial institutions operating in Canada to mitigate against potential risks and losses.
  3. The Bank of Canada is vested with the responsibility of currency issuance, encompassing the creation and dissemination of Canada’s legal tender. It is also accountable for the safeguarding of Canada’s monetary system, upholding its security and soundness.
  4. In pursuit of its mandate to promote economic welfare, the Bank of Canada undertakes rigorous research endeavours aimed at exploring various economic issues. These include but are not limited to inflation, macroeconomic growth, and monetary stability. Furthermore, the Bank publishes economic data and conducts analytical assessments to equip policy-makers with the requisite information necessary for decision-making.

All in all, the Bank of Canada assumes a pivotal role in the maintenance of a stable and thriving Canadian economy.

silicon valley bank
silicon valley bank

Silicon Valley Bank failure: Precedents for bank failures in Canada

The rich history of Canadian banking started in 1817 when the first financial institution was created. The first Canadian bank collapse was the Home Bank in 1923. That was an outcome of enormous fraud.

In September 1985, two Western Canada-based banks, Northland Bank and Canadian Commercial Bank failed. This triggered a period of mergers in Canada’s banking sector, with many smaller financial institutions merging with the largest banks.

But the good news is that since the 1985 bank failures, the Canadian financial market has been unfailing. The federal government has put stringent regulations as well as oversight in place. There have been failures of some regional trust and loan companies, but no federally chartered bank has failed since the two in 1985.

Some lessons that have been learned from these bank failures are:

  1. Diversification is crucial: Financial institutions that had a varied portfolio of loans and investments were much better able to weather financial recessions than those that were heavily overweighted in a specific industry or geographic location.
  2. An effective guideline is vital: The Canadian federal government’s regulatory structure played a substantial role in preventing any chartered bank from failing during the global economic conditions and the economic crisis of 2008. Efficient laws can help recognize as well as minimize dangers before they come to be significant problems.
  3. Company culture issues: In a few of the financial institution failings that took place in the past, there was a history of risk-taking as well as lax oversight. Financial institutions that prioritize strong controls for monitoring risk, as well as accountability, are much better positioned to prevent tragic failures.
  4. Collaboration is vital: Throughout times of financial tension, cooperation between financial institutions, regulators, as well as the federal government can help prevent systemic failures and also mitigate the influence of any economic downturn.
  5. Openness is important: Clear and precise reporting of financial details is necessary for investors and regulators, as well as the general public, to comprehend the threats and the health and wellness of financial institutions.
  6. Prudent lending methods are important: Financing practices that prioritize creditworthiness and also risk management are important for maintaining the security of the economic system.

In general, the lessons gained from past financial institution failures in Canada underscore the value of diversity, efficient laws, a strong business culture of controls over risk-taking, transparency and sensible financing practices for the stability and health of Canada’s financial system.

Silicon Valley Bank failure: What happens to deposits if a Canadian bank failed?

The Canada Deposit Insurance Corporation (CDIC) is a Crown corporation that protects the balances held by Canadian depositors in the event of a bank’s failure, to a specified maximum amount.

If a participant bank fails, the CDIC repays eligible depositors for their insured deposits up to b$100,000 per depositor, per insured deposit classification. This protection maintains the stability of the Canadian financial system as well as ensures that Canadians can continue to access their funds as needed.

To promote sound monetary practices and also effective economic frameworks, the CDIC likewise keeps an eye on and analyzes the dangers of dealing with Canada’s monetary system while teaming up with other organizations.

silicon valley bank
silicon valley bank

Silicon Valley Bank failure: 5 ways Canadians can prepare for bank failure

Financial institution failures are a significant matter, and it is necessary to take proper measures to safeguard your funds. Although such occurrences are unusual in Canada, it is a good idea to be planned for unforeseen situations. To this end, Canadians can adopt the complying with actions:

  1. Track your accounts: Regularly tracking your account balances and investments can assist you to identify any type of unauthorized activity or errors at an onset.
  2. Distribute your funds: Instead of retaining all your funds in a single savings account, you might consider distributing your financial savings across separate categories of accounts or type per institution up to the CDIC-insured amount. By making sure that all of your bank deposits are eligible deposits, you will eliminate the danger of losing your money in the event of the failure of a bank.
  3. Understand your coverage: The CDIC gives deposit insurance coverage of up to $100,000 per insured group per bank. Make certain you know the coverage limitations and which of your accounts are placed in insured categories.
  4. Diversification: It is recommended that you expand your investment portfolio by taking into consideration all investment types like stocks, bonds, or real estate if you have significant savings. Staying informed as well on news and advancements in the financial sector is crucial. You need to know any signs of difficulty at your bank to make sure that you can take timely action.
  5. Preparing a backup plan: In case of a bank fails, you must have sufficient cash money to cover your immediate needs as well as different resources of debt or funding. These steps can help you remain tranquil as well as focused in a dilemma.

Although the possibility of a financial institution failing in Canada is low, the government has steps in place to safeguard depositors. Taking these preventative measures can aid you to feel extra safe and prepared for any unforeseen event.

Silicon Valley Bank failure: Conclusion

To conclude, the Silicon Valley Bank failure has sent out shockwaves in the tech sector, the global banking system and the financial markets. There will no doubt be a detailed post-mortem analysis of what went wrong. No doubt the bank’s risk management practices which shaped its lending practices and exposure to the tech industry played a significant part in its downfall. With fewer alternatives offered for funding as well as advisory services, start-ups and investors will need to find new alternatives in the marketplace to be successful in the post-Silicon Valley Bank world.

The Canadian banking system and our domestic banks are considered to be one of the most stable, safe and secure on the planet. While there are possible dangers, such as high levels of household debt and a real estate market correction, the Canadian federal government and regulatory bodies have ongoing programs to prevent major bank failures and to safeguard depositors should a federally chartered bank fail. Furthermore, the CDIC supplies deposit insurance as described above, which shields depositors in the event of a financial institution failure. Generally, Canadians can feel confident in the strength and security of their financial system.

I hope you enjoyed this Silicon Valley Bank failure Brandon’s Blog. Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

silicon valley bank
silicon valley bank

 

 

 

 

 

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FROM GRIPPING TAKEOVER TO DISCHARGE: HOW LONG DO RECEIVERSHIPS LAST?

how long do receiverships last
how long do receiverships last

How long do receiverships last in Canada? Introduction

In my September 2021 Brandon’s Blog, THE CANADIAN RECEIVERSHIP EASY BEGINNERS GUIDE, I provided an easy-to-understand guide to understand the receivership process. To summarize, I described that in Canada, a receivership is a legal remedy available to secured creditors to recover outstanding amounts under a secured loan if a company defaults on its loan payments. It may also be used in shareholder disputes to complete a project, liquidate assets, or sell a business.

A court may appoint a receiver to take possession of assets, oversee liquidation proceedings, and distribute the proceeds according to the applicable legal priorities as outlined in Canada’s Bankruptcy and Insolvency Act (BIA). Or, a secured creditor may issue a letter of appointment to the same effect.

It is essential to recognize that receivership and bankruptcy are distinct legal proceedings. Bankruptcy is a formal proceeding, regulated by the BIA, to provide debtors with debt relief when they are financially incapable of paying their unsecured creditors. Conversely, a receivership is a process available to secured creditors to recuperate outstanding debt arising from a secured loan or to address shareholder disputes.

The purpose of this Brandon’s Blog is to answer the question I am often asked: “how long do receiverships last in Canada?”.

how long do receiverships last
how long do receiverships last

How long do receiverships last in Canada? Understanding what receivership is

There are two types of receiverships in Canada: court-appointed receiverships and private receiverships. Court-appointed receivers are appointed by a court to oversee the management and disposition of a debtor’s assets. Private receivers are appointed by secured creditors as part of a loan agreement and the security agreement between the debtor company and the creditor.to manage and sell a business debtor’s assets outside of the court system.

The receiver, regardless if it is a court-appointed receiver or privately appointed receiver, takes control of a company’s assets and business operations to repay outstanding debts to creditors. The receiver’s primary duty is to maximize the value of the assets and distribute the proceeds to the creditors according to their priority ranking. The receiver has the power to sell, manage, or liquidate the assets and may also negotiate with creditors to restructure the company’s debt.

Some key players in a receivership process are:

  • Borrower: The owner of the property who defaults on their loan obligations or faces financial distress.
  • Lender: The secured lender, normally a financial institution, who initiates the receivership action to protect their interest in the property and recover their debt.
  • Receiver: The neutral third party who is a licensed insolvency trustee (formerly called bankruptcy trustees) and is appointed either privately or by the court to take charge of the property and manage it toward a sale or resolution.
  • Court: The judicial authority that grants or denies the receivership request, sets the terms and conditions for the receiver’s appointment and oversees the receivership process.
  • Law firm: The lawyers who are acting for the lender, the borrower and the court-appointed receiver.

The powers and duties of a receiver can vary depending on the nature of the assets or the court order appointing them. Generally, it includes taking control of the assets, managing them in a financially responsible manner, and reporting to the court and parties involved in the dispute.

The duration of receiverships in Canada can vary depending on the specific circumstances of the case, but it typically lasts for a few months to over a year.

how long do receiverships last
how long do receiverships last

How long do receiverships last in Canada?

Several factors will affect the duration of receivership in Canada, including:

  • the complexity of the case;
  • the number and nature of the assets involved;
  • the cooperation of the parties involved; and
  • the efficiency of the court system.

Other factors may include the availability of qualified professionals to manage and sell the assets, the level of creditor involvement and negotiation, and the overall economic and market conditions at the time. Ultimately, the length of receivership will depend on the specific circumstances of each case.

Court supervision is the oversight provided by a court in a court-appointed receivership. The purpose of court supervision is to appoint the receiver, to allow for the receiver to obtain the approval of the court to decisions and actions the court-appointed receiver wishes to take, to ensure that the receiver acts in the best interest of all parties involved and follows the court’s orders and to allow a forum for any aggrieved party to bring their dispute to the court for adjudication.

Termination of a receivership occurs when the court is satisfied that the receiver has fulfilled their duties and objectives or when the receiver’s appointment is no longer necessary. The court terminates a receivership by court order after approving the receiver’s final report and accounts.

how long do receiverships last
how long do receiverships last

How long do receiverships last in Canada? Frequently asked questions (FAQs)

Navigating receiverships can be a tricky and complex situation. Asking questions like “how long do receiverships last in Canada?” is essential to any company dealing with financial hardship. Here I will cover some of the common FAQs associated with receiverships in Canada, and provide an in-depth look at the timeline of these proceedings. It is essential to have a thorough comprehension of receiverships to successfully manage this situation.

What are the differences between bankruptcy vs. receivership?

Receivership is a process to secure the rights of secured creditors, allowing for the control and eventual sale of the assets of a distressed company. Bankruptcy, on the other hand, is a legal process which allows a company in financial difficulty to reorganize its affairs or liquidate its assets under the guidance of an insolvency trustee – providing a safety net to unsecured creditors.

What happens during a receivership process in Canada?

As part of the receivership process in Canada, a receiver is appointed to handle a company’s assets and activities, facilitating the sale of these to settle the company’s debt to creditors.

How does a receiver sell a business or assets?

To sell a business or assets, a receiver has many options available. A receiver can:

  • advertise the assets for sale by running a tender bid sales process;
  • a tender bid sales process could be stand-alone or could be combined with a stalking horse sales process;
  • the assets could be liquidated through a public auction using the services of an auctioneer;
  • the receiver could hand all the assets over to a liquidator in order to sell the assets in an online auction;
  • in certain circumstances, the receiver may wish to hire a professional business broker experienced in that particular industry or assets the receiver took possession of; or
  • for retail store assets, the receiver may sell the entire package of assets and will then run a retail sale to the public.

Regardless of the process chosen, the receiver’s aim is to market and sell the assets or business and obtain the best price for the assets or business under the circumstances.

How does a creditor apply for receivership in Canada?

Secured lenders can apply for receivership in Canada by filing an application to the court under a federal or provincial statute or enforcing their security rights by appointing a receiver privately through a security instrument by way of an appointment letter. A receivership is a remedy that allows a secured creditor to take control of and sell the debtor’s property and assets to collect their secured debt through a private or court appointment process.

Can a receivership be stopped or avoided?

Receivership can sometimes be stopped or avoided through negotiation with the secured creditor(s), restructuring or refinancing of debts, or by finding alternative sources of funding. However, whether or not it can be stopped or avoided depends on the specific circumstances of each case. The cessation of receivership will not be easy unless the secured creditor is being paid out.

how long do receiverships last
how long do receiverships last

How does a creditor enforce a secured loan in Canada?

In Canada, a creditor can enforce a secured loan by appointing a receiver under a private contract or through the court process. Upon appointment, the receiver will seize and sell the secured assets or the assets set out in the court order to recover the amount owed.

However, before being able to appoint the Receiver, there have to be one or more events of default as described in the loan agreement. Then, the lender must be reasonable in allowing the company borrower to cure the default. If the company in default does not remedy the default(s) and the lender has lost confidence, the lender can then make a written demand on the company to repay the entire loan, plus interest and costs and also serve the necessary statutory form on the defaulting borrower.

The lender must give the borrower a reasonable period of time to repay the secured lender’s debt. Reasonable time will vary depending on the unique circumstances of the situation. In Canada, the minimum amount of time that has to be given is 10 days, unless the borrower acknowledges in writing that they can never repay the debt and is waiving the notice period.

Legal options available to recover outstanding loan payments may include sending demand letters, filing a lawsuit, obtaining a judgment and using collection methods such as wage garnishment or asset seizure.

How long does the bankruptcy process take in Canada?

The timeline of a corporate bankruptcy process depends on the uniqueness and complexity of each individual situation. There is no typical timeline, but, it could be a year or more from the start of the bankruptcy until the licensed insolvency trustee is discharged.

How do I liquidate assets in Canada?

When seeking to divest yourself of some assets you have a plethora of choices – in the case of an asset like real estate, you can list it on the public market. Alternatively, you can try to find the right buyer on your own. Or, if you’d like some professional assistance, enlist the help of a savvy broker or financial adviser.

What are the consequences of not paying off secured loans in Canada?

In Canada, if you don’t pay back a secured loan, the lender may reclaim the collateral you put up, personal property like a car or real property such as a house. Don’t let your possessions be taken away! Be sure to make all loan payments in a timely manner.

how long do receiverships last
how long do receiverships last

How long do receiverships last in Canada? Conclusion

So I hope that you now have a good appreciation for receiverships in Canada including the answer to the question “how long do receiverships last in Canada?”. If your company or business is under financial pressure and your secured creditor is about to demand full repayment of all loans, you need immediate professional advice.

Revenue and cash flow shortages are critical issues facing entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

how long do receiverships last
how long do receiverships last
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Brandon Blog Post

THE LUCRATIVE RESP BANKRUPTCY PLAN TO DEBT RELIEF

resp bankruptcy
resp bankruptcy

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this Brandon Blog, please scroll to the very bottom of the page and click play on the podcast.

RESP bankruptcy introduction

Parents contribute to their child’s Registered Education Savings Plan (RESP) in order to save for their children’s post-secondary education. In contrast to Registered Retirement Savings Plans (RRSPs), RESP contributions, or the total amount of all contributions made by the parent(s), is a property that is available for seizure in bankruptcy of the owner of the RESP.

In this Brandon Blog, I explain why an RRSP, unlike an RESP, is mostly exempt from seizure in bankruptcy. RRSPs and a Registered Retirement Income Fund (RRIF) are exempt from seizure based on a balancing act between federal and provincial laws. The RESP bankruptcy is not exempt. Since I practice in Ontario, I will only comment on the situation there.

Will I lose my RRSP in bankruptcy?

An RRSP’s exemption from seizure in bankruptcy was determined solely by provincial law before 2008. The bankruptcy treatment of RRSPs was not outlined in federal insolvency law. The Bankruptcy and Insolvency Act (Canada) (BIA), being the federal bankruptcy law in Canada, other than the exception described in the next section, exempted assets contained in either an RRSP or an RRIF from seizure as of July 2008.

Inequality among RRSPs was the reason for changing the BIA. If your RRSP was held at a financial institution, it would not be exempt from seizure if you filed for bankruptcy. But if you held it:

  • at an insurance company; AND
  • the beneficiary designation of your plan was irrevocable as your spouse, child, parent, or grandchild in the event of your death

under the Ontario Insurance Act, the entire RRSP or RRIF was exempt from seizure.

The reason for amending the BIA was twofold:

  • all RRSPs and RRIFs should be treated the same, regardless of which institution holds them; and
  • retirement income should not be lost as a result of financial problems for Canadians who have gone bankrupt, since their fresh start is made possible by the bankruptcy system.

In other words, before July 2008, people who were going to file for bankruptcy and who had a sizeable RRSP with a chartered bank would transfer the RRSP to an insurance company and designate one or more beneficiaries accordingly. In Canada, bankruptcy courts heard many cases about transactions designed to save an RRSP from seizure in bankruptcy.

An insolvency trustee or bankruptcy trustee could replace the named beneficiary of an insurance policy or retirement investment, including RRSPs or RRIFs, with the Estate and then collapse the plan so as to obtain the funds if the beneficiary designation of the policy was revocable. Trustees cannot collapse investments if the beneficiary is irrevocable; such plans constitute exempt assets. A Trustee would have to use it as one of the reasons for opposing a bankrupt’s discharge. Since the person, aware of their insolvency, transferred the asset for no value, the creditors are unable to pursue them. This was is known as a settlement.

The leading case on this issue, which was eventually followed by other jurisdictions, including Ontario, is Royal Bank of Canada v. North American Life Assurance Co., 1992 CanLII 4696 (SK CA), also known as the Ramgotra case. Dr. Ramgotra was bankrupt. A lower court decision regarding what should be done with the RRSP funds, turned into an RRIF, prior to his bankruptcy but when he knew he was in financial trouble, was appealed by the Royal Bank of Canada, having received Court approval to appeal the case instead of the Trustee appealing. The Court of Appeal found that the property had an irrevocable interest in Mrs. Ramgotra despite the transfer of the RRSP being a settlement.

So effective July 2008, the Canadian government amended the BIA so that regardless of which of the financial institutions an RRSP was held, only the contributions made within 12 months of the date of bankruptcy were subject to being lost to the licensed insolvency trustee in bankruptcy.

resp bankruptcy
resp bankruptcy

Registered Education Savings Plans (RESP) and bankruptcy: RESP bankruptcy is not exempt

It is fairly simple to understand why RESP contribution funds are not exempt from seizure in bankruptcy. Since the parent can collapse the plan before maturity, the child does not receive a property interest in the RESP funds. There is therefore no trust or transfer of property to the child. In an RESP bankruptcy, the bankrupt parent’s Trustee can therefore collapse their RESP.

A Trustee must make satisfactory arrangements with the parent, or another relative, to have them pay the Trustee the equivalent amount of funds in the RESP at the date of bankruptcy. This way the Trustee will have recovered on the asset for the benefit of the bankruptcy estate and the bankrupt’s creditors. The bankrupt parent will have done what is necessary in order to avoid the RESP collapsing, losing the government contributions money and not having the plan value go forward for the child.

MP Dan Albas introduced his private member’s bill, An Act to amend the Bankruptcy and Insolvency Act (property of bankrupt registered education savings plans), on June 3, 2019. In this bill, the purpose was to amend section 67(1)(b.3) of the BIA, so that RESPs receive the same treatment as RRSPs and RRIFs. Like many other private member’s bills that die, this bill has not made any progress.

The thrust is obviously to make sure that other than for contributions made in the 12 months before the date of bankruptcy, a parent should not lose the RESP benefits for their child’s post-secondary school education because of their bankruptcy.

No matter how well-intentioned, one societal reason this Bill C-453 initiative will fail is that an elementary or high school student’s college tuition differs from that of a retiree whose earning years are behind him or her. So to date, there is no federal law that provides creditor protection for a Registered Education Savings Plan.

How to preserve an RESP bankruptcy

Your RESP’s liquidation cash value can be determined by contacting the financial institution holding the funds. The liquidation value does not include the government grant portion of the funds that are only available if the child attends a qualified educational institution.

You can instruct your Trustee to contact the financial institution holding the RESP funds to have the plan cashed out and remit the proceeds (net of government contributions) to the Trustee. This way the asset of the bankruptcy estate will go for the benefit of your creditors if you are not interested in keeping your RESP, which is unlikely in almost every case.

Preserving an RESP bankruptcy can be achieved in two ways. The first is to avoid bankruptcy. No, I don’t mean to tell you not to deal with your financial problems because like it or not, you are in an insolvency scenario. Just don’t use bankruptcy. If your debts not secured by your primary residence are $250,000 or less, you should consider a consumer proposal. You may use the large debtor proposal provisions of the BIA if the debts exceed this amount.

Second, the nonbankrupt spouse, or another relative, can buy the Trustee’s right, title, and interest in the RESP for an amount equal to its liquidation cash value. Thus, the purchaser becomes the owner of the RESP, and the child will continue to benefit from it. In acting in the best interests of unsecured creditors, the Trustee will have recovered the liquidation cash value.

resp bankruptcy
resp bankruptcy

RESP bankruptcy: A very recent divorce example

Having just dealt with this issue last week in one of our personal bankruptcy filings, I am writing about the RESP bankruptcy treatment today. I am the insolvency trustee in a bankruptcy filed by a divorced mother who is now on her own. The failure of her restaurant caused by the COVID-19 pandemic caused her to go bankrupt because of her high debt load.

Her ex-husband and she owned a registered education savings plan for their only child. As part of the no-cost session I provide to anyone contemplating insolvency, I discussed what might happen to an RESP bankruptcy if a bankruptcy is filed.

It was an upsetting experience for the mother. It was clear that she was upset at the prospect of losing half the liquidation proceeds if the plan collapsed. In addition, it was part of the divorce agreement that the jointly owned RESP would be continued for the benefit of the child. We had to create a plan to keep the RESP afloat in the event of RESP bankruptcy. I had no trouble coming up with the plan. What was tricky were the technical details.

This is what we came up with. First, we told her to contact the financial institution where the funds were held and obtain a written statement of the plan’s liquidation cash value. After receiving the written statement from the financial institution, we told her to pass it along to us. She did, and it turned out that the total liquidation value was approximately $26,000. She, therefore, had a half-interest valued at $13,000. We then got her permission to contact her ex-husband and explain the situation.

The ex-husband was informed that his ex-wife would be filing for bankruptcy by us. There would be an RESP bankruptcy. He knew that he had to maintain the RESP. When his ex-wife went bankrupt, we told him that if he purchased our right, title, and interest in the RESP, he would become the sole owner, and the fund would be preserved in an RESP bankruptcy and they could continue contributing to it. It was no problem for him, thankfully.

Because she had actually not yet filed for personal bankruptcy, we had not yet been designated as the licensed insolvency trustee. Our objective was to make sure there wouldn’t be a change of mind despite the divorce condition. Based on Canadian bankruptcy legislation, we scheduled the ex-husband to offer a $13,000 third-party cash guarantee to cover the costs of carrying out the personal bankruptcy.

Furthermore, we agreed that upon the bankruptcy, subject to the approval of the Inspectors, if any were appointed in this summary administration bankruptcy, we would then convert this third-party guarantee into the right, title, and interest as the licensed insolvency trustee of the RESP.

A bill of sale would be issued to him, and we would confirm jointly with the financial institution that he is now the sole owner of the RESP, and they would need to amend their records accordingly. This RESP bankruptcy would have been fully realized as we had gotten the full value of the mother’s half-interest in the RESP. It was a win-win situation for everyone involved.

resp bankruptcy
resp bankruptcy

RESP bankruptcy: What about you?

Hopefully, you see from this Brandon Blog, there are ways to deal with an RRSP both in bankruptcy and non-bankruptcy situations. I hope you found this RESP bankruptcy Brandon Blog informative. Are you in financial distress and a debt crisis? Are you worried about any RRSP or RESP contributions? Do you not have adequate funds to pay your financial obligations as they come due? Are you worried about what will happen to you in retirement? Do you need to find out what your debt relief options and realistic debt relief solutions for your family debt are?

Call the Ira Smith Team today. We have decades and generations of experience assisting people looking for life-changing debt solutions through a debt settlement plan and AVOID the bankruptcy process.

As licensed insolvency professionals, we are the only people accredited, acknowledged and supervised by the federal government to provide insolvency advice and to implement approaches to help you remain out of personal bankruptcy while eliminating your debts. A consumer proposal is a government-approved debt settlement plan to do that. It is an alternative to bankruptcy. We will help you decide on what is best for you between a consumer proposal vs bankruptcy.

Call the Ira Smith Team today so you can eliminate the stress, anxiety, and pain from your life that your financial problems have caused. With the one-of-a-kind roadmap, we develop just for you, we will immediately return you right into a healthy and balanced problem-free life.

You can have a no-cost analysis so we can help you fix your troubles.

Call the Ira Smith Team today. This will allow you to go back to a new healthy and balanced life, Starting Over Starting Now.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

resp bankruptcy

Categories
Brandon Blog Post

CEBA LOAN UPDATE: 3 INTRIGUING CREATIVE WAYS FOR ENTREPRENEURS TO CONQUER CEBA LOAN DEFAULT

ceba loan update

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

CEBA loan update introduction

Canada Emergency Business Account (CEBA) loan application deadline was on June 30, 2021. As of right now, COVID-19 support for businesses and individuals soon will be ended by the federal government. The assistance from government programs has been both necessary and very helpful. CEBA was merely one product from an array of government support for Canadians and Canadian businesses.

Many entrepreneurial businesses have lost confidence in their financial prospects due to uncertainty over the fate of ongoing federal pandemic support, according to the Canadian Federation of Independent Business (CFIB). It is pushing the Liberals for more life support to avoid a flood of insolvencies.

This Brandon Blog provides a CEBA loan update and answers a question that many entrepreneurs have asked us: What counts as a CEBA loan default? The blog also tells you about three intriguing creative ways for entrepreneurs to conquer CEBA loan default.

CEBA loan update: Original CEBA eligibility requirements

The CEBA online application process began on April 9, 2020. It was part of the general program to supply Canadian companies with access to credit and support for business operations under the COVID-19 support introduced by PM Trudeau. Under the original program, federally guaranteed financing was provided to each qualifying company for $40,000 by financial institutions.

Canadian chartered banks processed and financed the loans based on the applications from businesses. The Canada Emergency Business Account is not a business account, despite its name. Instead, it serves as a non-revolving loan. It is a government-guaranteed loan of $40,000. The CEBA are interest-free loans that do not need to be repaid until December 31, 2022. Interest will accrue after that date.

The Canadian government created the CEBA to assist small and medium companies and non-profit organizations with their most pressing cash needs during the COVID-19 crisis. The entire process was conducted online. A pre-screening tool was implemented as part of the process. Applicants completed the questionnaire and provided the necessary information. After that, the online application process system:

  • issued a CEBA pre-screen tool reference number;
  • advised that your bank had submitted the application;
  • explained that your bank has no involvement in the application process; and
  • that you will hear back within 7 to 10 business days.

The approval requirements for the $40K CEBA were not difficult to meet. On or before March 1, 2020, any incorporated company or non-profit relying on their respective CRA Business Numbers and having a Canada Revenue Agency Business Number (BN) could apply for the CEBA. A company or non-profit also needed to be a business with payroll and have a total 2019 payroll of $50,000 to $1 million with the Canada Revenue Agency Business Payroll Number (BN).

There was also an online attestation to sign confirming all the information was correct. Each financial institution had its own form. So, for example, if you applied through The Toronto-Dominion Bank (TD), there was a TD website application attestation.

ceba loan update
ceba loan update

CEBA loan update: Expanded CEBA eligibility requirements

Then there was a CEBA loan update since it was first announced as additional government assistance for businesses’ additional funding. There were changes to the maximum loan balance, eligibility criteria, and other details. As part of the CEBA program extension, businesses that were in operation in Canada on March 1, 2020, were now eligible for a $60,000 grant. Businesses must be all-Canadian corporations, partnerships or proprietorships.

The $60,000 CEBA and $20,000 CEBA expansion financing is not available to other types of business. The $40K CEBA amount already funded automatically qualifies you for the $20,000 CEBA expansion, if you were approved for the $40K CEBA amount in the first place. Now, sole proprietors and partners in business partnerships are also eligible. Corporations owned by family members continue to qualify. Not-for-profit organizations apparently still did not qualify.

To be eligible, applicants for this CEBA loan update had to have a payroll amount between $20,000 and $1,500,000 in the 2019 fiscal year. If not, the expansion allowed them to apply for the non-deferrable expense stream (applicants whose total payroll was $20,000 or less in the 2019 calendar year).

The actual program requirements were written in a funny way. Rather than payroll expenses, it talks about having paid employment income. Apparently, Parliament wanted to emphasize that the money should be used to employ Canadians, so they can earn the employment income being paid by the business payroll!

Eligible businesses are ones that:

  • CRA Business Numbers – has an active business account with a CRA-issued BN registered before March 1, 2020.
  • Has a business chequing/operating account with the proposed lending institution they are applying through when the application process begins. An example would be an account at BMO B M O business banking relationship or a similar account at any other Canadian chartered bank. You should not have any problem meeting this requirement of having an active business chequing account if you have a Canadian operating business.
  • In order to qualify for the entire $60,000 CEBA, applicants must not have previously used the Canada Emergency Business Account Program; they also cannot request support under the CEBA Program at any other financial institution. The $20K loan could be added to the $40K loan that you already received.
  • The plan was to remain open or to reopen as soon as the restrictions were lifted.

CEBA loan update: Repayment terms, rate of interest, other fees and charges

The main provisions of the CEBA term loan are:

  • Business owners have access to a single tranche $60,000 loan through CEBA.
  • Interest is 0% until December 31, 2022.
  • Interest-only until then;
  • Loans are fully open, so the non-forgiven portion of principal repayment can be done in full or in part before January 1, 2023.

    ceba loan update
    ceba loan update

CEBA Forgiveness: Pay it back on time and get free money

To fully repay the loan by December 31, 2022, a borrower needs to repay only a portion of the amounts outstanding. They only need to pay $40,000 of the $60,000 principal, or $30,000 if you only took a $40,000 CEBA loan. If the loan is repaid by 2022, there will be $20,000 forgiven. According to the federal government, this is actually called a loan forgiveness program. This portion represents forgivable loans for early repayment.

After December 31, 2022, any outstanding balance will bear interest at the 5% rate per year for ‘Extended Term.’ Extended Term ends on December 31, 2025. Essentially, the Extended Term converts it to a 3-year term loan after the interest-free period, which is December 31, 2022. Interest will be payable every month on the outstanding principal during this period. No later than December 31, 2025, the full principal balance of $60,000 is due.

CEBA loan update: Default, Notice of Default and Demand for Repayment

There are some CEBA loan update default events. Each default event is fairly straightforward. You may be required to repay a loan if any of the following defaults occur:

  • non-payment under CEBA funding;
  • the repayment of any other business loans not covered by CEBA to the same financial institution is not made under their terms.
  • violation of any term of the CEBA agreement, including making false or deceptive statements in the CEBA application;
  • the business becomes insolvent or commits one or more acts of bankruptcy;
  • a receiver is appointed.

If the borrower defaults, the only recourse for the bank would seem to be to advise the borrower that full repayment is due immediately. A CEBA loan agreement contains no other specifics that grant additional powers to a lender.

Personal guarantees are not included in CEBA loans. The CEBA agreement does state that any successors or personal representatives, including executors and administrators, are bound by the CEBA agreement. When only corporations could apply in the beginning, this language did not make sense. The language now makes sense since the CEBA update expanded CEBA to include sole proprietors and partners, who are people, not companies.

Keep in mind that if you are a sole proprietor or partner in an unincorporated business, the loan was made to you personally. So although there is no personal guarantee, if you run an unincorporated business, you are personally liable.

ceba loan update
ceba loan update

CEBA Loan Update: Now For The 3 Ways For Entrepreneurs To Conquer CEBA Loan Default

In the same way that I mentioned the findings of the CFIB in the introduction to this CEBA loan update Brandon Blog, I’ve been contacted by entrepreneurs who applied for and received the $60K CEBA loan funds only to lose confidence in the financial prospects of their business. The company is still in financial trouble and its operating costs are still greater than the revenue being earned. It is just the case that the business managed to hang on longer. Business owners want to understand the risks associated with CEBA repayment if:

  • their business fails;
  • it closes; or
  • If their financial institution appoints a receiver over the assets due to other loans that are in default or, the business goes bankrupt.

So far, I have informed them of my understanding of CEBA loan terms and CEBA loan default events. Entrepreneurs should also make sure the company’s books and records can demonstrate receipt of the CEBA interest-free loan and that used funds were appropriate for the company’s needs.

So here are the CEBA loan update 3 ways for entrepreneurs to conquer a CEBA loan default:

  1. The first CEBA loan update loan default tip is to relax because right now, nothing is due. Not interest or principal. Interest-only begins on January 1, 2023, and then it is a 3-year term loan with monthly payments of interest calculated at 5% per annum. So if your business is still running, for $250 a month, you can buy yourself another 3 years to see if things get better. Maybe things will look brighter as you get closer to the end of 2022 or 2026, as the case may be.
  2. If the CEBA loan borrower is an incorporated company, relax. You are not personally liable. This is my second CEBA loan update loan default tip.
  3. My third CEBA loan update loan default tip is we need to talk if you are a sole proprietor or partner. Don’t relax. Will you continue your business? Is it possible for the partners to pay off the CEBA loan and obtain a 25% loan forgiveness? I can develop strategies for you to reduce the damage of your personal obligations to the Bank if this isn’t possible.

CEBA loan update summary

I hope you enjoyed this CEBA loan update Brandon Blog post. Are you worried because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option? Call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

ceba loan update
ceba loan update
Categories
Brandon Blog Post

EXECUTOR DUTIES ONTARIO: OUR COMPLETE GUIDE TO MAKE A 1ST TIME EXECUTOR LOOK LIKE A PRO

executor duties ontario
executor duties ontario

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would prefer to listen to the audio version of this Brandon Blog, please scroll to the very bottom of the page and click play on the podcast.

Executor duties Ontario: What is an executor or estate trustee?

Executors, or Estate Trustees as they are now called in Ontario, are people named in a Will to become the personal representatives of the deceased. Executor duties Ontario is a complicated process.

The Estate Trustee accepts the role, authorizes the liquidation of the estate assets and the payment of money. The Executor directs and administers the deceased estate both in accordance with provincial and federal laws while abiding by the declared wishes of the deceased.

Executors are people who are legally responsible for the estate of someone who has died. They are required to manage the estate according to the wishes of the deceased person. To be an executor, you must meet certain minimum legal requirements. You should:

  • have already turned 18;
  • be financially stable;
  • reside in Ontario;
  • have good organizational skills;
  • be able to keep complete records of all the estate’s transactions;
  • have a good knowledge of financial matters; and
  • be able to make effective decisions about the estate.

Suppose there were no Will? What happens? Without a Will, a court can appoint an Estate Trustee Without A Will.

Through our other business, Smith Estate Trustee Ontario, my Firm acts as a Court-appointed Executor/Estate Trustee. Far too often, the person who ends up with the responsibility of settling the estate of a deceased family member or friend is unprepared to do so. This commonly leads to emotional stress, confusion, and financial hardship.

From this Brandon Blog, you’ll learn everything you need to know about effectively fulfilling your duties as an Estate Trustee in Ontario. You will learn how to handle the estate settlement process in Ontario and properly fulfill the duties using our Executor duties Ontario checklist.

Executor duties Ontario: What does an Executor/Estate Trustee Do Right Away?

Executors are people who are appointed to carry out the Will or trust of a person who has died. They are given the authority to make decisions on behalf of the deceased, as long as those decisions are consistent with the wishes expressed in the deceased’s Will or trust. There can be as many Estate Trustees as are indicated in the Will or trust document. When there is a Will, in Ontario, the role is one of Estate Trustee Under A Will.

Once you are notified that you are named as the Executor or one of the Estate Trustees, the first thing you need to do is to decide if you wish to act. Are you capable of doing the job and are you free from any conflict of interest? It is possible to recuse yourself before taking any steps to act as the Executor. However, once you start acting as the Executor, it is very difficult to resign.

An Executor will obtain a copy of the Will as one of the first things they do. As a result, the person’s most recent Will automatically becomes the last Will of the deceased. Some people are unaware that a Will is only as good as its Executors and how they perform their Executor duties Ontario.

Executor duties Ontario: Follow this guide to look like a professional Estate Trustee

Action #1 – Funeral Arrangements and other Day 1 action

If the family is not taking care of this themselves, then you must arrange for the funeral immediately after death. Religious observance of the family and the wishes of the deceased should be your guide. Other things Executor duties Ontario include are:

  • Arrange for organ donation if applicable.
  • Find the Will.
  • Coordinate with family members to notify friends and family of the passing.
  • Request multiple copies of the Proof of Death Certificate from the funeral director.
  • Apply for a provincial Death Certificate.
  • Make necessary arrangements for the ongoing care for dependents/minor children and pets.
  • Contact the deceased’s bank to ensure that all amounts on deposit are safeguarded, access to any safety deposit box is secured and change signing authorities to Executor(s) so that necessary payments can be made.
  • Confirm payment to the funeral home.

Action #2 – Submit official paperwork on behalf of the Estate

There are many other notifications that should be made within say, 1 to 2 weeks after the funeral. These Executor duties Ontario consist of:

  • File the CPP death benefit claim.
  • Transfer the pension to the spouse by applying for CPP Survivor’s Benefits.
  • Canada Revenue Agency Notification to Update Record.
  • Submit OAS/CPP/GIS notifications.
  • Send the Notice of Death to Equifax and TransUnion, the two Canadian credit bureaus.

    executor duties ontario
    executor duties ontario

Action #3 – Protect the hard assets

Concerning any hard assets, as soon as possible after the funeral, Executor duties Ontario include:

  • Identify and secure all assets: the home, the contents of the home, and other real estate assets.
  • Direct the post office to forward the mail care of the Estate Trustee.
  • Inform utilities, landlords, and other service providers.
  • Review all documents associated with asset ownership, business, investment, including insurance, mortgages, and leases.
  • Analyze all financial documents, including contracts, divorce papers, or separation agreements, court orders.
  • Secure personal property, business, vehicles, perishable goods, and safety deposit boxes.
  • To keep the insurance coverage active, find out what action you need to take if there is a vacant property.
  • Have all the hard assets appraised.

Action #4 – Protecting financial assets

I already mentioned that I would contact any known financial institution. Other Executor duties Ontario to protect financial assets as soon as possible after the funeral, include:

  • Gather information about debts and expenses.
  • Cut off all unnecessary expenses. People rarely think about memberships or subscriptions until the bill or publication arrives in the mail.
  • The other banks or credit unions, investment advisors, and life insurance companies should be notified.
  • All credit cards and debit cards should be cancelled.

    executor duties ontario
    executor duties ontario

Action #5 – Contacting beneficiaries

Other Executor duties Ontario include:

  • Completing the inventory of assets and their values on the date of death.
  • Contacting each of the beneficiaries of Estate individually.
  • Explaining the Estate administration process to them.
  • Estate beneficiaries need to know they only receive distributions upon the probate of the Will, completion and filing of all final tax returns, and full payment of the estate’s debts and debts of the deceased. How the estate is handled will also depend on its size and nature.
  • Depending on the circumstances, the Executor of the estate can make interim distributions.

It is important to keep in mind that Estate Trustees are personally liable. This means if you pay out too much on an interim basis and don’t have enough to cover all the debts, you will be in trouble if you can’t claw back any money.

Action #6 – The probate process

Generally, probate involves completing the necessary Ontario government forms for the confirmation and appointment of the Executor(s), who will manage the estate distribution. The Executor duties Ontario for probate include, say within 30 days after death:

  • Speak to the estate administration lawyer for assistance.
  • Calculate the estate administration tax for the Ontario estate.
  • With the help of the estate administration lawyer, prepare the probate application.
  • The probate application, along with all relevant documents, should be filed with the deceased’s local probate court. The required documents, including the original Will and payment of the estate administration tax.

    executor duties ontario
    executor duties ontario

Action #7 – While you are waiting for the Certificate of Appointment of Estate Trustee With A Will

The court can take many months to respond to your probate application, especially in Toronto. In the meantime, there are things that Executor duties Ontario allow you to do without the need to show the Certificate of Appointment. You can use a copy of the Will. These include:

  • The deceased’s passport, driver’s license, and Ontario health card can be cancelled.
  • Meeting with the investment advisor, banker, and insurance agent to gain a better understanding of the estate’s assets.
  • Finalize the list of assets.
  • Developing a strategy to liquidate the assets of the estate.
  • Choose a real estate broker, negotiate the rate and prepare the listing for posting after the grant of probate is received. Be sure you obtain a professional appraisal first to determine the current market value. You don’t want to rely on just the broker’s estimate of market value.
  • Organize an estate sale to dispose of personal belongings that have not been claimed by the family. When appropriate, arrange donations.
  • Prepare the property for sale. In almost all cases, minor repairs, painting, cleaning, and staging are necessary.
  • Prepare life insurance forms (to be submitted once you have your Certificate evidencing the appointment of the Estate Trustee(s)).
  • Stay in constant contact with the beneficiaries to inform them that you are still waiting for the grant of probate and that things are proceeding normally.

Action #8 – Selling the assets in Estate

Some of the following Executor duties Ontario could be done only with a certified copy of the Will. Some will require a Certificate from the court appointing the Estate Trustee:

  • Open an estate bank account with your preferred financial institution if you have not already done so.
  • Merge all bank accounts into the estate account.
  • List any real property for sale.
  • Request that all mutual funds, stocks, bonds be liquidated and the funds transferred to the estate
    account.
  • Incorporate all estate sale proceeds and any other cash assets into the estate trust account.

    executor duties ontario
    executor duties ontario

Action #9 – Pay all debts and calculate and pay all taxes

To make the final distribution, the creditors and amounts owing to Canada Revenue Agency must be settled in full. In this phase, Executor duties Ontario include:

  • Clear debts.
  • Make sure that tax documents are in order.
  • Prepare all necessary income tax returns, including the estate tax return, with the help of an accountant or other tax specialist.
  • If your Notice of Assessment has been received and the CRA has been paid all amounts owed, you can request a Tax Clearance Certificate from them.

Action #10 – Final distribution to estate beneficiaries and completion of Estate records

Now it is time to make the distribution to beneficiaries and close your file. These Executor duties Ontario are:

  • If you are charging a fee, including a care and management fee for having administered the estate, calculate it and pay yourself.
  • Prepare and issue the distribution to beneficiaries of the remainder of the estate.
  • Prepare a final accounting and issue it to all beneficiaries.
  • Get releases from beneficiaries.
  • Closing the estate bank account.
  • Terminate the deceased’s social insurance number.

    executor duties ontario
    executor duties ontario

Executor duties Ontario: Compensation for estate trustees

The Ontario estate laws and associated regulations provide a framework for the management of a deceased person’s estate and for the distribution of the property. The laws and regulations also deal with the duties and responsibilities of the Executor and compensation for the Estate Trustee.

All Estate Trustees are legally permitted to charge fees. A fee that isn’t in the Will must be an amount that is considered fair and reasonable. The amount depends on the value of your estate and the amount of work your Estate Trustee has to do.

Even though the fee calculation is more complicated than this, for our purposes, you should use as a benchmark 5% of the estate’s value. Additionally, an additional care and management fee of 2/5 of 1% of the average annual value of the assets is sometimes charged.

Executor duties Ontario summary

I hope you found Executor duties Ontario Brandon Blog helpful. If you are concerned because there is an Estate that needs a professional Estate Trustee, Smith Estate Trustee Ontario can help you. Since we are also a licensed insolvency trustee firm, we can also help if the deceased Estate is insolvent. We can also help if you or your business have debt problems.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

We hope that you and your family are safe, healthy and secure during this coronavirus pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

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Brandon Blog Post

A BANKRUPTCY DISCHARGED IS THE KEY TO HEARTWARMING DEBT ELIMINAT1ON

bankruptcy discharged
bankruptcy discharged

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

If you would like to listen to the audio version of this Brandon Blog, please scroll to the very bottom and click play on the podcast.

Your Bankruptcy Discharged – But Wait

Well, that took no time at all. Last week I told you about a bankruptcy discharge hearing I attended where the bankrupt person had his bankruptcy discharged by the Master in the Ontario Superior Court of Justice In Bankruptcy and Insolvency.

The Master’s decision was released on August 13, 2021. On August 20, 2021, we received the Notice of Motion of the opposing creditor appealing the Master’s decision to give this person his discharge from bankruptcy. That is their right.

In this Brandon Blog, I want to discuss the reasons for the opposition to the fact that this bankrupt had his bankruptcy discharged and my thoughts on one scenario of how this may play out. First, I just want to refresh your memory about the bankruptcy process and specifically how the discharge under bankruptcy law in Canada process works. Then I will get into this real-life story.

Canada’s Bankruptcy and Insolvency Act (BIA) gives people the option of filing a debt management plan restructuring consumer proposal if they are unable to pay back all unsecured debt owing to their unsecured creditors. This option offers the consumer a way to maybe keep their home and car that is heavily financed, as long as they can maintain the payments to the secured creditors such as the financial institution who financed the purchase of the home by way of the mortgage, or the auto loan, and it makes sense in their budget.

A successful consumer proposal is also the way to avoid bankruptcy. Like bankruptcy, the process starts with a no-cost consultation for financial advice with a licensed insolvency trustee. A licensed trustee is the only party able to administer a consumer proposal in Canada (or a bankruptcy). The Trustee can help you lose your debt load.

A first-time bankrupt who fulfills all of their obligations, including attending 2 mandatory credit counselling sessions, is entitled to a discharge after 9 months from the date of bankruptcy.

bankruptcy discharged
bankruptcy discharged

A bankruptcy discharged: First and second bankruptcy (or more)

When an insolvent debtor files for bankruptcy for a second time, you cannot be discharged after a nine months bankruptcy period. When you don’t need to pay the Trustee any surplus income payments, a second bankruptcy lasts for a minimum of 24 months. A second-time bankruptcy filer with surplus income must make those payments for 36 months to qualify to get their bankruptcy discharged.

A third or subsequent bankruptcy follows the same timeline as a second bankruptcy. There is, however, a high probability that the Trustee or creditors will oppose the discharge. Where there is opposition, there must be a court bankruptcy discharge hearing and the court can impose any conditions it deems appropriate.

What does bankruptcy discharged mean in Canada?

It is a Canadian legal term used to describe the release of a consumer debtor or business proprietorship from their obligations, responsibilities, debts, and legal claims. “Bankruptcy” is a legal proceeding to protect the estate of a person or company. “Discharge” fulfills the requirement that a person is released from their obligations, responsibilities, debts, and legal claims through the bankruptcy process. There is no equivalent requirement for a company.

The insolvent debtor filing for bankruptcy merely invokes the legal protection to the person and puts a bankruptcy trustee in place to realize upon any available assets in the bankruptcy estate for the benefit of the creditors. Bankruptcy filings do not relieve the person of their debts. It is when the person is bankruptcy discharged, that they are released from their debts (other than for a select list of exceptions).

bankruptcy discharged
bankruptcy discharged

Bankruptcy discharged: Types of bankruptcy discharge

The licensed insolvency trustee can usually issue an automatic discharge when there is no trustee in bankruptcy opposition or creditor opposition to a bankrupt’s application for discharge, and the bankrupt has fulfilled all of their duties during bankruptcy.

In case of opposition or if the bankrupt meets one of the criteria that prevents automatic discharge (for example, the bankruptcy process finds the bankrupt to have a high tax debt situation), a discharge hearing in court is held, which is conducted by the Master of the Bankruptcy Court. There are four types of the bankruptcy discharge and a fifth outcome is also possible. Here they are:

  1. Absolute discharge – An absolute discharge means that the bankrupt may obtain a discharge immediately. If the bankrupt has fulfilled all of their duties and there is no insolvency trustee or creditor opposition, this can be provided by the licensed insolvency trustee of the bankruptcy estate handling the bankruptcy administration;
  2. Conditional discharge – can get discharged if certain conditions are met. Typically, to get bankruptcy discharged this way, conditions include payment to the licensed insolvency trustee;
  3. Suspended – the bankruptcy discharge will be granted at a later date and may very well be combined with an absolute bankruptcy discharge or conditional bankruptcy discharge;
  4. Refused– because the debtor has not made full disclosure or done other bankruptcy duties; or
  5. “No order” – the insolvency trustee informs the court that the bankrupt has not fulfilled all of his or her obligations and has failed to respond to the Trustee’s demands for information despite the passing of time. The licensed insolvency trustee is at liberty to seek its discharge when the “no order” order is provided. When the bankrupt has actually complied with the court’s requirements, he or she may apply for a hearing for discharge. When the Trustee gets its discharge, the stay of proceedings preventing collection actions against the bankrupt disappears.

A bankruptcy discharged: The appeal just served upon us – a true story

To refresh your memory about the discharge hearing itself you can CLICK HERE. The appeal just served upon us seeks an Order setting aside the decision of the Master made on August 13, 2021. The grounds for the appeal can be described as throwing everything including the kitchen sink! The stated grounds are that the Learned Registrar erred:

  • by granting the bankrupt an absolute discharge from bankruptcy;
  • in holding that the Receiver’s interest in the discharge application is not firmly established and by not recognizing that should the Receiver be paid an amount in excess of the debt owed to the secured creditor, any surplus funds would be available for the other creditors of the
    corporate bankruptcy estate;
  • in holding that the discharge hearing is not the proper forum in which to make determinations as to the propriety of the various transactions that the Receiver has raised;
  • in finding that the bankrupt has generally cooperated with me as his Trustee;
  • in declining to consider the bankrupt’s conduct in the corporate bankruptcy because that the trustee in the corporate bankruptcy had remedies available to it;
  • in finding that the failure of the company’s business was due to the loss of its 1 customer and pricing related to that arrangement;
  • in relying on her finding that the corporate trustee may be the only truly interested party on the discharge or would benefit most from the conditional order sought if the secured debt is otherwise repaid;
  • in exercising her discretion in finding that an order of discharge requiring payment of the significant amount proposed by the Receiver is not reasonable;
  • in finding that the bankrupt has no ability to pay and that his future prospects to pay are unknown;
  • in finding that an order for a conditional discharge of the magnitude sought would be tantamount to a refusal;
  • by omitting to consider relevant evidence or the absence thereof, in relying on irrelevant considerations, and/or giving improper weight to the evidence before the Court; and
  • anything else the lawyers may want to say.

    bankruptcy discharged
    bankruptcy discharged

Standard of review to getting a personal bankruptcy discharged

Such an appeal from a bankruptcy discharge hearing has a standard of review. According to BIA S. 192(1), the bankruptcy registrar can, among other things, grant orders of discharge. S. 192(4) of the BIA permits a party dissatisfied with a registrar’s order or decision to appeal it to a judge.

Registrars are exercising judicial discretion when granting discharges in bankruptcy cases. As long as the registrar acted reasonably, the judge should not set it aside or ignore it. Furthermore, if an appeal from a bankruptcy discharge order is based on alleged errors in factual findings, the court will not intervene if the findings of fact can be justified based on credible evidence. If the registrar has materially misinterpreted the law or made an error in respect of the facts underpinning his or her discretion, discretionary decisions can, of course, be overturned.

If the registrar decides that in order for the person to get their bankruptcy discharged, the court imposes conditions, those conditions must be realistic to allow the bankrupt to meet the requirements in a reasonable amount of time. If an amount ordered in order for the person to get their bankruptcy discharged is unrealistic and the discharge is conditional on making additional payments, the appellate court in such cases previously held that results in an error of law. The appellate judge can either substitute other conditions or refer the matter back to the registrar for reconsideration.

A bankruptcy discharged: What my gut is telling me

I normally am not in the prediction business. However, having been the insolvency trustee responsible for administering the consumer bankruptcy, having written the reports to the court on the bankrupt’s application for discharge, having attended the discharge hearing and having heard all the evidence, having read the Registrar’s decision and the Appeal documentation, I believe that the appeal should be dismissed.

You might recall that opposing the bankrupt getting bankruptcy discharged was the Receiver of the company previously operated by the bankrupt. As a result of complaints regarding the bankrupt and his family in relation to the company’s operations, the Receiver has filed lawsuits against several parties. The proceedings are still pending. According to previous court rulings, the court should not consider the issues raised in other proceedings when deciding whether to discharge the bankrupt. A discharge hearing is a summary proceeding. It is important to see how the debtor behaved during HIS bankruptcy.

As for the judge’s decision, only time will tell. I’ll keep you up to date as always.

bankruptcy discharged
bankruptcy discharged

Bankruptcy discharged summary

I hope that you found this bankruptcy discharged Brandon Blog helpful in telling this real-life story of an appeal to a person getting their bankruptcy discharged. Problems will arise when you are cash-starved and in debt. There are several insolvency processes available to a person or company with too much debt. You may not need to file for bankruptcy.

If you are concerned because you or your business are dealing with substantial debt challenges, you need debt help and you assume bankruptcy is your only option, call me.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as an alternative to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people with credit cards maxed out and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do as we know the alternatives to bankruptcy. We help many people and companies stay clear of filing an assignment in bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

 

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Brandon Blog Post

PAYDAY LOANS TORONTO NO CREDIT CHECK

payday loans toronto no credit check, bankruptcy, debt, financial institution, financial institutions, financial plan, interest rate, interest rates, living paycheque to paycheque, payday loan, payday loan companies, payday loans, starting over starting now, the cash store, trusteeHere is a very funny bit from “Last Week Tonight with John Oliver” on HBO regarding the predatory lending practices of payday loan companies. It is very sad, but true. It is well worth watching this video because among the humour, are some very good lessons as to why not to get involved with payday loan companies and their related very high cost of lending.

Although it applies to the US payday loan industry, it is equally applicable to Payday Loans Toronto No Credit Check also. We also have written other blogs on the dangers of the Payday Loan Industry, including:

And now, click on the video to listen to this very funny bit by John Oliver.

Instead of perpetuating the cycle of debt, we encourage you to see a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for a no fee, no obligation appointment. We’re a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. It’s time to end the cycle of debt. Say NO to payday loan companies. Say YES to a solid financial plan for moving forward to a debt free life.

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Brandon Blog Post

PAYDAY LOAN COMPANIES: THERE ARE OPTIONS

payday loan, payday loans, payday loan companies, living paycheque to paycheque, interest rate, interest rates, trustee, bankruptcy, debt, financial institution, financial institutions, financial plan, the Cash Store, VanCity, starting over starting nowFinally a financial institution has stepped up to the plate and is offering a viable alternative to payday loan companies. Sadly, people who typically turn to payday loan companies are low income earners who are barely surviving and living paycheque to paycheque. Payday loan companies are not helping them; they are creating higher debt loads and holding them hostage with insane interest rates.

The Cash Store, a payday loan company, offers a $300 loan for 14 days for $69, which is an annual interest rate 599.64% on their payday loans product. Vancity, Canada’s largest community credit union with branches in Metro Vancouver, the Fraser Valley, Victoria and Squamish, launched a new financial product to combat payday loans, called Vancity Fair & Fast Loan. If a credit union member borrows $300 for minimum term of two months and pays it off in two weeks, it would cost $2.20, a 19% annual percentage rate.

The Canadian Payday Loan Association says as many as two million Canadians take out payday loans every year. There has been a lot of talk about “cleaning up the payday loan industry” but if more financial institutions follow Vancity’s lead, payday loan companies would disappear from our landscape without further government regulations.

Don’t wait for payday loans to disappear before searching out more permanent solutions. Instead of perpetuating the cycle of debt, we encourage you to see a professional trustee. Contact Ira Smith Trustee & Receiver Inc. for a no fee, no obligation appointment. We’re a full service insolvency and financial restructuring practice serving companies and individuals throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. It’s time to end the cycle of debt. Say NO to payday loan companies. Say YES to a solid financial plan for moving forward to a debt free life.

Call a Trustee Now!